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2� 1 �� 1 �35
<br /> DEED �F TRUST
<br /> 4�ontinued} Pag� 3
<br /> v�h�r ��en cou[d he asserfi�d ❑n account of the work, ser�ices, or materials. Trustor will upon request of Lender
<br /> furnish �o Lender advance assurances satis�actary ta L�nder �hat Trus�or can and wil! pay �he c�st ❑f such
<br /> impra�ements.
<br /> PR�PERTY DAiSIIAGE INSURANCE. The fallowing prv�risions relating to insuring the Property are a par�o��this Deed o�
<br /> Trust.
<br /> Main#enance of fnsuran�e. Trustar shall procure and maintain palicies of fire insurance with s�andard extended
<br /> co�erage endorsements �n a replacement basis for th� fuff insurable �alue ca�ering all Impro�ements on the Reai
<br /> Proper�y in an amount sufificient to a�vid application �f any coinsurance claus�, and with a standard mortgag�e
<br /> cfause in�a�or vf Lender. Trustvr shall also procure and ma�ntain c�mprehensi�e general liabii�ty insurance in such
<br /> co�erage amounts as Lender may request with Trustee and �ende� being named as add"€tional insureds in such
<br /> fia�ility insurance policies. Addir€onally, Trusfior shall maintain such other insurance, incfuding but not limited ta
<br /> hazard, business interruption, and hailer insurance, as L�nder may reasonably require. Pof€cies sha[� be written in
<br /> form, amounts, co�era�es and �asis reasonably acceptable to Lender and issued by a cvmpany or companies
<br /> reasanably acc�ptable to Lender. Trustor, upon request o� Lender, will deli�er �❑ Lender frvm time ta time the
<br /> p�licies or c�rti�ficates vf insuran�e in �orm sat�sfac�ory �o Lender, including stipulations that �o�erages will not be
<br /> cancelled o�diminished without at I�ast�hirty �3D� days pri�r written notice ta Lender. Each insurance policy also
<br /> shall include an endarsement pro�iding that co�erage in#a�ar of Lender will nat he impaired in any way hy any ac�,
<br /> omission flr defauft o�Trus�or �r any other person. Should �he Real Prop�rty 1�e lo�ated in an area designated by
<br /> the Administratvr a�the Federa� Emergency Management Agency as a special �rlvod ha�ard area, Trus�ar agrees to
<br /> obtain and mainta�n Federal F�oQd Insurance, if a�ai[ahle, for the fiull unpaid principal ba�ance of�h� lvan and any
<br /> priar liens on the property securing �he laan, up #o the maximum palicy I�mi�s s�t under the National Flovd
<br /> lnsurance Program, or as oth��wise requ€red by Lend�r, and to maintain such insurance�ar the term vf�h� [oan.
<br /> Applica#ion vf Prviceeds. Trustor shall promptly notify Lender of any [oss ❑r damage t❑ the Property. Lende� may
<br /> make proof of loss if Trustor �rails tv d� so wi�hin �i�teen �'�5� days of the casualty. Whether o� nv� Lender`s
<br /> security is impair�d, L�nder may, a� Lender's el�ction, recei�e and retain th� proceeds o� any insu�ance and apply
<br /> the proceeds to the reducti�n vf the Indeb�edness, payment o� any lien a��ecting the P�operty, or the restoration
<br /> and repair of th� Property. If Lender eiects �o apply the proceeds to rest��ation and repair, Trustor sha[l �epair or
<br /> rep[ace the damaged or des�royed �mpro��ments in a manner satis�actory to Lender. Lender shal�, upon
<br /> satis#acfiory praof of such expenditure, pay or reimburse Trustor �rom the praceeds �or the reasonah�e cost of
<br /> repair or restorativn if Trusfior is nat in defauft under this Deed of Trust. Any proceeds whi�h ha�e no� been
<br /> disbursed within �8� days af�er their receip� and whi�h Lender has not committed t❑ the repair or resto�ation of
<br /> the Prflperty shall be used �First to pay any amount awing to Lender under this ❑eed of Trust, then to pay ac�rued
<br /> interes�, and the remainder, if any, shall be app�ied �v the prinGipal balance of the Indebtedness. !f Lender ho�ds
<br /> any proceeds af�er payment in full of the indeb�edness, such proceeds sha�[ b� paid �o Trustor as Trust�r's
<br /> interests may appear.
<br /> Trus�or's Report on [nsurance. lJpon request of Lender, hflwe�er not mvre than ance a year, Trustar shall furnish
<br /> �o Lender a report on ea�h existing po[i�y o� insurance showing: �1} �he name of th� insurer; �2} the risks
<br /> insur�d; �3� the amount ❑� the poli�y; �4� the praperty insured, the then current r�placement �alue o� such
<br /> pr�perty, and the manner o�determinin� tha��a[ue; and �5} the expiration date of the policy. Trus�or shall, upon
<br /> requ�st of Lender, ha�e an independent appraiser satisfactory t❑ Lender determine the cash�a[ue replaGem�nt cvs#
<br /> of the Property.
<br /> TAX AND iNSURAN�E RESERVES. Sub�ec� tv any limi�ations and consist�nt with any requirem�nts set by applicahle
<br /> �aw, Lender may require Trus�or to maintain with Lender reser�es ��r payment af annual tax�s, assessments, and
<br /> insuran�e p�emiums, ►nrh�ch reser�es shall be crea�ed by an ini�ial depasi� and subsequent mon�hly payments, �r
<br /> paymen�s at such other inter�al as paymen�s under the fVote may be due, ❑f a sum estima�ed by Lender�o be suff�cient
<br /> to pay �he tatal annua� taxes, ass�ssments, and insurance premiums Lender reasonably ant�c�pates to be paid f�vm
<br /> these reser�es. The reser�e�unds shall be held by Lender as a general deposi�#rom Trus�or, which Lender may satis�y
<br /> by payment ❑�r the �ax�s, assessments, and insurance premiums r�quir�d to be paid by Trustor as they bec�me due.
<br /> Lender shaf[ ha�e the righ� to draw upon the �-eser�e funds to pay such i�ems, and Lender shall not be requ�red to
<br /> determine the �al�dity or accuracy of any item before paying i�. Nathing in the ❑eed of Trust shal[ be construed as
<br /> requiring Lender to ad�an�e ather monies �or such purposes, and Lender shall n�t in�ur any liability for anything �t may
<br /> do or omit to da with respe�t to �he reser�e a�cvunt. Subject t❑ any limitations se� by applicab[e law, if #he reser�e
<br /> �unds disclvse a shor�ag� or defiiciency, Trustor shall pay such shartage or deficiency as r�qui�ed by L�nder. A�i
<br /> amounts in the reser�e accoun�are hereby pledged ta�urther se�ure the f ndebtedness, and L�nder is hereby authvriz�d
<br /> t❑w�fihdraw and apply su�h amvunts on�he lnd��tedness upon the vccurrence of an E�ent of❑e�ault. Lender shall nvt
<br /> he required �a pay any interest or earnings on the reser�� funds un[ess required by law ❑r agreed �o k�y Lender in
<br /> writing. Lender does nvt hold the reser�e funds in �rust �vr Trustor, and Lender is nat Trustor's agent �rvr paym�n� vf
<br /> the taxes and assessments required to be paid �y Trustor.
<br /> LENt7ER'S E)CPENDITURES. lf any a�tion or praceeding is commenced �hat wau[d material[y a�r�ect Lend�r's interest in
<br /> the Prvperty or if Trustor�aifs to Gamply with any pro�is�on vf this Deed of Trust or any R�iated ❑o�umen�s, including
<br /> but nv� limited to Trustflr's failure to discharge or pay when due any amounts Trustor is required to discharge ❑� pay
<br /> under this Deed of Trust or any Related Dacuments, Lender on Trustor's behalf may �but shal� not be ❑b�iga�ed to3 take
<br /> any a�tion that Lender deems appropriate, including hut no� limited to discha��ing or paying all taxes, liens, securi�y
<br /> in�erests, �ncumbrances and ather claims, at any tim� le�ied or placed on�he Proper�y and paying all cos�s for insuring,
<br /> maintaining and p��ser�ing the Property. All such expendi�ures incurred ar paid by Lend�r for such purposes will then
<br /> bear �nterest at the rate charged unde� the Note �rom �he date �ncurred or paid by Lender �o the date of repayment �y
<br /> Trustar. All such expenses will become a part o� the Indebtedness and, at Lender's option, wi�� {A� be payable on
<br /> demand; �B� be added �o the ba[ance af the Note and be apportivned among and be payabfe with any ins�al[m�nt
<br /> payments to become due during eith�r ��} the term vf any applicable insuran�e policy, or �2} the remainin� �erm of
<br /> the Not�; or {C; be treated as a balloan payment which wil[ be due and payable at th� No�e's maturi�y. The ❑�ed of
<br /> Trust also wil� secure paymen� of these amounts. Such right shall be in addi�ian t� all other rights and remedies to
<br /> which Lender may be entit��d upon De�aul�.
<br /> WARRANTY; DEFENSE t]F TITLE. Th��o�lowing pro�isions relating to❑wnership of the Prvperty are a part Qf this Deed
<br /> �f Trust:
<br /> Title. Trustor warrants tha�: �a} Trustor holds govd and marketable �itle of recvrd to the Property in fee simple,
<br /> free and c�ea� of all Ii�ns and encumbrance� �ther �han th�se set forth in the Rea1 Property description or in any
<br /> title insuranc� policy, title report, or #inal tit�� ❑pinion issu�d in fa�or o�, and accepted by, Lender in connection
<br /> with�his ❑��d of Trust, and �b� Trustor has the full right, power, and authori�y to exe�u�e and deli�er this Deed o�
<br /> T�ust to Lender.
<br /> Def�nse of Title. Subject �o the excep�ion in the paragraph abv�e, Trustor warrants and wi�� �fore��r defend the
<br /> �it�e to the Proper�y against the law#ul claims o�all persons. In the e��nt any action or proc�eding is cammenc�d
<br /> that questions Trustvr's�ifile or the interes�of Trustee or Lende� under this Deed o�Trust, Trustor shall de�end the
<br /> action a�Trusta�'s expense. Trustvr may i�e fihe nominal party in such proceeding, but Lender shall be entitled �tv
<br /> participa�e in the proceeding and to be represented in the proceeding t�y counsel �f Lender's own cho�ce, and
<br /> Trustor will deli�er, or cause to be deli�ered, �o L�nder such instruments as Lender may request�rom time to �ime
<br /> to p�rmit such participation.
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